STOCK MARKET REVIEW

The stock market closed weaker in the review week on the back of losses in 9 counters. The GSE Composite Index (GSE CI) shed 58.69 points (2.79%) to close at 2,042.05 points, compared to 2,100.74 points at the  close of the previous week. This translates into a year-to-date (YTD) loss of 9.53%. The GSE Financial Stocks Index also shed 32.36 points to close the week at 1,874.05 points, increasing its YTD loss to  7.21%.

Market capitalization decreased by 1.10% for the week from GH¢55,200.79 million at the close of the previous week to GH¢54,591.93 million at the close of the week. This represents YTD decline of 3.87%.   

There was relatively less activity on the market compared with that of the preceding week. A total of 24,261,385 shares, valued at GH¢15,315,135.68 changed hands for the week, compared with  27,413,831 shares valued at GH¢19,716,661.21 recorded in the preceding week. MTNGH  dominated both volume and value of shares traded for the week respectively. MTNGH accounted for 99.13% (27,176,235 shares) of total volume of shares traded and 93.54% (GH¢18,441,982.15) of total value of shares traded for the week.

The market closed on Friday with  nine laggards and no gainer. Total Petroleum Ghana Ltd. led the laggards for the week after closing trading at GH¢2.40 from GH¢2.70 at week open. Thirty-one (31) counters remained flat at the closing bell on Friday.

The graphs and table below highlight activity on the market during the week.

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CURRENCY MARKET

The Cedi weakened against the USD for the eleventh straight week. It traded at GH¢5.6029/$ on Friday, compared with GH¢5.6010/$ at week open, reflecting w/w and YTD depreciations of 0.03% and 1.24% respectively against the USD. This compares with YTD depreciation of 5.30% a year ago.

The Cedi however strengthened against the Euro on the week. It traded at GH¢6.0844/€, compared with GH¢6.1276/€ at week open, reflecting w/w and YTD appreciations of 0.71% and 2.09% respectively against the Euro. This compares with YTD depreciation of 3.72% a year ago.

The Cedi likewise strengthened against the GBP on the week. It traded at GH¢6.9673/£, compared with GH¢7.0584/£ at week open, reflecting w/w and YTD appreciations of 1.31% and 5.01% respectively against the GBP. This compares with YTD depreciation of 7.01% a year ago.

The Cedi also strengthened against the CAD for the week. It opened trading at GH¢4.0314/C$ but closed at GH¢4.0216/C$, reflecting w/w depreciation and YTD appreciation of 2.44% and 5.87% respectively against the CAD. This compares with YTD depreciation of 6.75% a year ago.

Source: Bank of Ghana

GOVERNMENT SECURITIES MARKET

Government raised a total of GH¢1,502.64 million in the week under review across the 91-Day, 182-Day and 364-Day Treasury Bills and the 2-Year Treasury Note. This compared with GH¢623.39 million raised in the previous week.

The 91–Day, 182-Day and 364-Day Bills added 3bps, 1bp and 1bp to settle at 13.95%, 14.02% and 16.75% respectively. The 2-Year Note meanwhile shed 145bps to settle at 18.75%.

Please see below for more details.

Source: Bank of Ghana

COMMODITY MARKET

Gold prices closed higher for the week. Gold futures settled at US$1,713.90 per ounce on Friday, reflecting w/w and YTD gains of 0.76% and 12.69% respectively.

Oil prices closed stronger for the second week following a significant drop in U.S. oil rig counts. Brent futures traded at US$30.97 a barrel on Friday, reflecting w/w gain and YTD loss of 17.13% and 53.08% respectively.

Prices of Cocoa posted marginal losses for the week. Cocoa futures settled at US$2,418.00 per tonne on Friday, reflecting w/w and YTD losses of 0.08% and 4.80% respectively.

International Commodity Prices

Source: www.investing.com

BUSINESS TERM OF THE WEEK

Loose Credit: A central bank policy designed to stimulate economic growth by lowering short term interest rates, making money less expensive to borrow. It is also called accommodative monetary policy or easy monetary policy.

Sourcewww.investorwords.com

ABOUT CIDAN

CIDAN Investments Limited is an investment and fund management company licensed by the Securities & Exchange Commission (SEC) and the National Pensions Regulatory Authority (NPRA).

Website: www.cidaninvestments.com

Disclaimer

The contents of this report have been prepared to provide you with general information only. Information provided on and available from this report does not constitute any investment recommendation.

The information contained herein has been obtained from sources that we believe to be reliable, but its accuracy and completeness are not guaranteed.